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BMW outsold Mercedes-Benz by about 2,000 cars in the United States last year.

BMW beats Mercedes-Benz to claim first U.S. luxury sales crown

January 4, 2012

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BMW fended off a late-year surge by rival Mercedes-Benz to win its first title as best-selling luxury brand in the United States.

BMW said Thursday that U.S. sales rose 15 percent to 26,834 in December, for an annual total of 247,907. Mercedes said its sales last month climbed 28 percent to 25,701, pushing its tally for the year to 245,192.

The results officially end Lexus' 11-year reign atop the U.S. luxury rankings. The Toyota Motor Corp. brand reeled after the March earthquake in Japan disrupted production, finishing the year down 13 percent at 198,552. Mercedes won the title once, in 1999, before ceding the U.S. crown to Lexus.

Thursday's announcements also capped an unusual end to the reporting of annual auto sales. BMW of North America and Mercedes-Benz USA were the only companies that failed to release U.S. totals along with the rest of the industry on Wednesday, drawing more attention to the luxury race.

The results exclude Mercedes Sprinter vans and Smart cars as well as BMW's Mini brand, which aren't luxury vehicles.

BMW sales advanced 13 percent for the year in an overall market that rose about 10 percent. Mercedes' U.S. deliveries also climbed 13 percent, aided by a refreshed C-class sedan and redesigned M-class SUV.

Mercedes advanced after BMW ended the third quarter leading its German rival by 7,621 U.S. sales. The lead narrowed to 1,582 by the end of November.

Both automakers increased incentives in November and carried forward customer discounts into December, according to Ivan Drury, an industry analyst with Edmunds.com.

Mercedes increased incentive spending in November by 39 percent compared with a year earlier, and BMW's incentives rose 25 percent, according to Autodata Corp. Many of those discounts and incentives are on the C class and 3 series, which are the automakers' top sellers.

Rivals have noticed the discounting.

"They've been outspending us--even with some relatively newer products," Kurt McNeil, Cadillac's vice president of sales, said in a telephone interview. BMW has offered $400 to $600 a car more than the General Motors brand, he said, and Mercedes' discounts exceeded Cadillac's by more than $1,000. "They've been bringing it from an incentive standpoint," he said.

While some automakers in the past have delayed releasing monthly results, "this is unusual," Jesse Toprak, an industry analyst with TrueCar.com, said Wednesday. "I don't really recall this happening from two automakers who are clearly going head-to-head against each other. It's too much of a coincidence."